Scottish Food and Drink

Scottish Food and Drink sector investment

Source: Bank of Scotland

The Scottish food and drink sector is aiming to maintain healthy double-digit growth with the majority of firms pursuing new international customers. The 2017 Food and Drink report produced by the Bank of Scotland found firms' growth forecasts now stand at 21 per cent.

That was down from 24 per cent the previous year, but up on the 19 per cent forecast in 2015. Six out of 10 within the industry are investing or are planning to secure new international customers within the next five years.

In addition, 21 per cent said they are planning on exporting for the first time. Highlighting the barriers to international trade, 64 per cent said complex logistics were the main challenges to exporting, while an equal number cited UK political uncertainty.

This was followed by cash flow and domestic regulation, both at 50 per cent. The food and drink sector has been a driver of the Scottish economy , with exports doubling during the past 10 years and sales of Scottish brands in the UK up by almost 40 per cent.

Finance Director's Survey

Finance Director's Survey

Source: Johnston Carmichael/ICAS

A survey of company finance chiefs found just three in 10 believe the UK economy will grow in the next 12 months.

A survey of 120 finance directors and chief finance officers, conducted by the Institute of Chartered Accountants of Scotland and mid-tier Scottish accounting firm Johnston Carmichael, found 27 per cent of respondents anticipate growth of between 1.0 per cent and 2.5 in the next 12 months.

The figure compares with just 13 per cent of respondents in the 2016 survey which followed the UK's vote to leave the EU. The latest survey found domestic political factors are now seen as the greatest threat to growth followed by Brexit-related issues. Fears over cyber security were raised by around a third of respondents this year, up from around a fifth in 2016.

The 2017 survey found 52 per cent of respondents expect the UK economy will remain flat or growth will be “negligible”, though the number forecasting a return to recession dropped from 45 per cent last year to 16 per cent this year.

Top Manufacturing Companies

Top 10 Scottish HQ manufacturing companies ranked by profit

Company

Profit before Tax (£m)

Life Technologies Ltd

211.71

Aggreko Plc

172.00

Johnson & Johnson Medical Ltd

116.32

LifeScan Scotland Ltd

65.88

James Jones & Sons Ltd

28.52

Ingenico UK Ltd

23.96

Alexander Dennis Ltd

23.73

Smart Metering Systems Plc

18.24

Gates (UK) Ltd

18.07

Mitsubishi Electric Air Conditioning Systems Europe Ltd

17.77

Scottish Football's expensive 11

Position

Player

Transfer Fee

Year of Transfer

GK

Fraser Forster

£2m

2012

RB

Steven Whittaker

£2m

2007

CB

Lorenzo Amoruso

£4m

1997

CB

Jozo Simunovic

£4m

2015

LB

Michael Ball

£6.5m

2001

RM

Andrei Kanchelskis

£4.5m

1998

CM

Mikel Arteta

£6.7m

2002

CM

Neil Lennon

£5.75m

2000

LM

Eyal Berkovic

£5.75m

1999

ST

Chris Sutton

£6m

2000

ST

Tore Andre Flo

£12m

2000

Signifcant financial power was flexed for the first time in many years in Scotland's top flight, with the Old Firm duo of Rangers and Celtic spending over £10m between the two of them.

Whilst the £4.5m splashed out by the Parkhead giants on Oliver Ntcham is alot of money in the current climate, it pales in comparison to the money spent on players when the league was at its peak in the late 90s/early 2000s before TV money became such a huge factor.

Indeed, this golden period has helped spike the league's most expensive ever 11 to a total value of £52.5m, with the £12m signing by Rangers of Tore Andre Flo in 2001 still the record transfer. Only two of the 11 players in the lineup were signed in the last 10 seasons.

£380m

Aldi's contribution to the Scottish economy

£69.4m

Record production spend on film and TV in Scotland in 2016, up 30% on the previous year

Airport Passengers

Airport

Passengers Q2 2017

% Change This Quarter

% Change 1 Year

Glasgow

2,690,355

41.10%

7.76%

Edinburgh

3,677,609

43.72%

11.62%

Prestwick

225,290

173.80%

0.65%

Aberdeen

816,559

22.47%

0.85%

Highlands & Islands (Combined Total of 11 Airports)

477,752

35.64%

13.30%

Overall

7,887,565

41.69%

8.84%

Regional operator Highlands and Islands Airport Ltd (HIAL) has reported an increase in passenger numbers at its 11 airports across Scotland, welcoming a total of 477,612 customers between April and June 2017.

The record-breaking figures show an increase of 55,934 compared to the same quarter in 2016, an increase of 13.3 per cent. Highlights include a 17.6 per cent rise at Inverness Airport,an 18 per cent increase at Barra and growth of 26.4 per cent at Islay. Edinburgh and Glasgow airports have again reported record monthly passenger numbers, with the latter exceeding one million in June for the first time.

Numbers were also up in Aberdeen, despite a steep year-on-year decline in helicopter flights servicing the offshore oil industry. Glasgow has broken the one million monthly passenger barrier in the height of the holiday season in July in years past – 2004, 2005, 2006 and 2016 – but never before in June.

Modern Apprenticeships

Starts by Age

Age

Q1 2016/17

Q1 2017/18

16-19

1471

1345

20-24

1066

1046

25+

1097

1219

Total

3634

3610

Modern Apprenticeships (MAs) provide individuals with the opportunity to secure industry-recognised qualifications at a range of Vocational Qualification (VQ) levels while in employment. The first quarter of 2017/18 saw 3,610 MA starts, which equated to 13% of the yearly start target. 34% were aged 25 or above, with the number of 1,219 being 11.12% greater than this time last year, the only age group which saw a year on year group in MAs. New figures from Skills Development Scotland have confirmed that Scotland is on track to achieve its target of 30,000 Modern Apprenticeships starts by 2020.

Source: Skills Development Scotland

Business Activity Scotland - July 2017

% Change in Business Activity This Month

Source: Bank of Scotland/IHS Markit

July’s survey data signalled a strong start to the third quarter of 2017 for the Scottish private sector.

Output rose at the fastest pace in nearly three years, reflecting stronger expansions in both manufacturing and services. Increased output was driven by a solid expansion in new business in July; the manufacturing sector registered sharp growth in new orders, whilst new business in the service sector rose at a comparatively moderate rate.

On the price front, input cost inflation remained steep in both the services and manufacturing sectors in Scotland.

Scottish Tourism Employment

Scottish Tourism Employment

Source: VisitScotland

In 2015 tourism employment increased by 11% on 2014, to reach 217,000 (9% of Scotland’s total employment), according to figures published by VisitScotland this year. Over the year to 2015 an extra 21,000 people were working in the sector.

This is the highest level of employment in tourism since Business Register and Employment Survey (BRES) records began in 2009. The rate of growth in tourism employment in Scotland was significantly above the British average in 2015 – tourism employment increased by 11% in Scotland versus 4% growth rate in Great Britain as a whole.

Although it should be noted movements in Scottish tourism employment have been sporadic over recent years, unlike Great Britain as a whole which has displayed more consistent trends.